Bets That the Fed Will Delay Interest Rate Rise Could Be Premature
ByWASHINGTON — As markets quake and stock prices fall, investors increasingly are betting that the Federal Reserve will not raise interest rates this year.
Their conclusion is a striking rejection of the Fed’s stated plans — and it appears premature.
The Fed watches financial markets closely, of course. Investors are losing money they might have spent, and falling prices can be an indicator of broader economic problems.
But the losses so far probably aren’t big enough to crimp growth, and officials have plenty of time to see what happens next. The Fed’s policy making committee doesn’t meet until mid-September, and it has two more meetings scheduled later this year, in October and December…
Bets That the Fed Will Delay Interest Rate Rise Could Be Premature
